The effects of product differentiation strategy on corporate growth in selected microfinance institutions in kenya

Abstract

The main purpose of this study was to assess the effects of product differentiation strategy on corporate growth of Microfinance Institutions (MFIs) in Kenya. The study employed descriptive and quantitative research designs. The target population was 57 firms and the sample size was 32 firms arrived at through stratified and purposive sampling methods. The questionnaire was the primary data tool. The study found out that product differentiation strategy has significant effects on corporate growth in MFIs in Kenya. It concludes that increased deployment of product differentiation strategy increases corporate growth in MFIs in Kenya. It recommends that managers should create, protect and maintain differentiated products and services in order to be competitive in industry thus leading to corporate growth. Further, policy makers should find and implement ways of encouraging MFIs to create and maintain product differentiation in their portfolios.